Ch 20 Prob 2 20-2 Cost of Production Report Venus Chocolate Company processes ch

Question

Ch 20 Prob 2 20-2 Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2016: ACCOUNT Work in Process-Blending Department ACCOUNT NO. Balance DateItem Debit Credit Debit Credit Mar. 1 Bal., 6,200 units, 1/5 completed 31 Direct materials, 248,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 249,000 units 31 Bal., 2 units, 4/5 completed 47,200 60,500 15,076 8,556 355,756 416,256 431,332 Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process-Blending Department. If an amount is zero, enter "0", when computing cost per equivalent units, round to two decimal places. Venus Chocolate Company Cost of Production Report-Blending Department

Explanation / Answer

FIFO method Beggining units 6200 Transferred out 2,49,000 Started into production 248000 Ending units 5,200 254200 254200 Equivalent units Material Conversion Beginning units 6200 6200 Completion in current period 0% 80% A 0 4960 Units started and completed 242800 242800 Completion 100% 100% B 242800 242800 Ending Units 5,200 5,200 Completion 100% 80% C 5200 4160 Total units A+B+C 248000 251920 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 347200 248000 1.40 Conversion cost 75576 251920 0.30 Total 422776 1.70 Cost of goods sold Material convertion cost Beginning inventory completed Completion 0% 80% Per unit cost 1.40 0.30 Units 6200 6200 Total cost   A 0.00 1488 1488 Units started and completed Completion 100% 100% Per unit cost 1.40 0.30 Units 242800 242800 Total cost    B 339920 72840 412760 Beginning work in progress C 8060 496 8556 Total cost A+B+C 422804 Ending work in progress Completion 100% 80% Per unit cost 1.40 0.30 Units 5,200 5,200 Total cost     7280 1248 8528 Total cost accounted for 431332 Cost per equivalent unit Material Conversion cost For current period 1.40 0.83 4 For beginning inventory 1.3 0.55 increase (decrease) 0.1 0.277

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